Fannie Mae’s Mortgage Portfolio Shrinks Further

Following an off-month in June which saw Fannie Mae’s gross mortgage portfolio contract at a well-below average rate of 5 percent, the portfolio shrank at the more customary rate of 24.7 percent in July down to an aggregate unpaid principal balance of about $308.8 billion, according to Fannie Mae’s July 2016 Monthly Volume Summary.

Fannie Mae’s gross mortgage portfolio has contracted at an average rate of 17.3 percent for the first seven months of 2016. The decline from June to July amounted to about $7.5 billion, down to its current aggregate UPB total of $308.8 billion.

The gross mortgage portfolio fell below its 2016 cap of $339.3 billion in March and has continued to contract.

In January 2016, Fannie Mae’s gross mortgage portfolio experienced a rare expansion, increasing at an annual rate of 5 percent. With July’s contraction, the portfolio has now contracted in all but four months out of the last 72 months (since June 2010). The four months in which the portfolio expanded were January 2016, March 2015, January 2015, and December 2012. At the beginning of that stretch in June 2010, the amount of UPB of the loans in the portfolio was $818 billion.

Fannie Mae’s total book of business, which includes the gross mortgage portfolio plus total Fannie Mae mortgage-backed securities and other guarantees minus Fannie Mae MBS in the portfolio, decreased at a compound annualized rate of 0.2 percent in July down to a value of about $3.1032 trillion, according to Fannie Mae. Year-to-date through the end of July, the total book of business has expanded at the annual rate of 0.2 percent.

A total of 6,958 loan modifications were completed on Fannie Mae-backed loans in July. The serious delinquency rate on single-family mortgage loans backed by Fannie Mae fell by two basis points in July down to 1.30 percent.

Click here to view the entire July 2016 Monthly Volume Summary for Fannie Mae.


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